Tether Announces Proof of 2024 Q1: Reports Record-Breaking $4.52 Billion Profit, Highest Ever Treasury Holdings, and Total Group Capital of $11.37 Billion
May 1, 2024: – Tether Holdings Limited (BVI) today announced an assurance opinion for Q1 2024 conducted by BDO, a leading global independent accounting firm. The updated attestation as of March 31, 2024 discloses additional financial information for the Tether Group that is no longer limited to the reserves backing the Tether fiat-denominated stablecoin. The new report provides an overview of the financial strength of the group as a whole and complements the information provided in the previous reserves report, which is now part of a new expanded and more transparent report.
Building on the momentum from Q4 2023, Q1 2024 delivered record profits of $4.52 billion, marking an important milestone for the Group.
The main contributors were those responsible for issuing stablecoins and managing their respective reserves, of which around $1 billion came from net operating income derived primarily from holdings of US Treasury securities. The remainder of the reported profit consisted of gains from mark-to-market gains on Bitcoin and gold positions. Moreover, the first quarter of 2024 marked the Group’s unprecedented achievement in increasing its direct and indirect holdings of US Treasury securities, which now exceed $90 billion. Indirect exposure was calculated to include overnight reverse repurchase agreements secured by US Treasury securities as well as investments in US Treasury securities through money market funds.
Additionally, as part of its steadfast commitment to transparency, the group has made public its net assets for the first time, revealing a staggering figure of $11.37 billion as of March 31, 2024. This reflects a notable increase from its recorded net assets of $7.01 billion as of December 31, 2023. The report also highlights that the excess reserves maintained as a buffer to support the company’s stablecoin offering have increased by $1 billion, bringing the total to approximately $6.3 billion.
With regards to the reserves backing the fiat-denominated stablecoin, BDO further confirmed that Tether-issued tokens are backed by a staggering 90% of cash and cash equivalents, highlighting the company’s commitment to maintaining liquidity within the stablecoin ecosystem. Additionally, in Q1 alone, over $12.5 billion in USDt was issued.
The Reserve Report (RR) section of the new report once again highlights Tether’s strong financial position.
The Company’s management asserts that, as of March 31, 2024:
- The total reserve of Tether tokens in circulation stands at $110,289,406,409 USD.
- The debt of the company that issues the Tether token is US$104,027,539,692, of which US$104,019,279,735 is related to the issued digital tokens.
- As of March 31, 2024, the value of the assets comprising the reserve exceeds the value of the liabilities of the companies issuing Tether tokens by $6,261,866,717.
The chart below provides a visual representation of the reserves as of March 31, 2024.
The chart below shows the continued growth of US Treasury bonds and cash and cash equivalents relative to total Tether tokens issued.
Tether Group’s strategic investments total more than $5 billion as of the report date and span a variety of sectors, including AI and data, renewable energy, P2P communications, BTC mining, etc. While these investments are not detailed in the new report, which supports fiat-issued tokens, they underscore Tether’s unwavering dedication to its mission.
“With its first certification of 2024, Tether has demonstrated its unwavering commitment to transparency, stability, liquidity, and responsible risk management. As shown in this latest report, Tether continues to break records with a new profit benchmark of $4.52 billion, reflecting the company’s financial strength and stability. By reporting a new reserve composition as well as group net assets of $11.37 billion, Tether is once again raising the bar in the cryptocurrency industry in the areas of transparency and trust,” Tether said. Tether CEO Paolo Ardoino.
Please refer to our most recent assurance opinion and consolidated reserve report for further information. here.
Tether may adapt the composition of its reserves in response to changing market conditions and community needs.
(USD amounts may be rounded to 2 decimal places for improved readability)
